If you like your doctor and health insurance, you can keep it…maybe not

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And from the White House’s official Youtube channel:

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Below is a screen capture from the White House’s “Reality Check” website which again assures Americans that they will not be forced off their current plans. (accessed 10/29/13 @ 6:19 PM)

reality check cap

It turns out that the President knew that policy requirements imposed by the Department of Health and Human Services and the Affordable Care Act would necessarily force insurance companies to drop coverage for customers.  Essentially, the above statements guaranteeing that we can keep our plans if we like them were said knowing it was false.

(NBC) — President Obama repeatedly assured Americans that after the Affordable Care Act became law, people who liked their health insurance would be able to keep it. But millions of Americans are getting or are about to get cancellation letters for their health insurance under Obamacare, say experts, and the Obama administration has known that for at least three years.

Four sources deeply involved in the Affordable Care Act tell NBC NEWS that 50 to 75 percent of the 14 million consumers who buy their insurance individually can expect to receive a “cancellation” letter or the equivalent over the next year because their existing policies don’t meet the standards mandated by the new health care law. One expert predicts that number could reach as high as 80 percent. And all say that many of those forced to buy pricier new policies will experience “sticker shock.”

None of this should come as a shock to the Obama administration. The law states that policies in effect as of March 23, 2010 will be “grandfathered,” meaning consumers can keep those policies even though they don’t meet requirements of the new health care law. But the Department of Health and Human Services then wrote regulations that narrowed that provision, by saying that if any part of a policy was significantly changed since that date — the deductible, co-pay, or benefits, for example — the policy would not be grandfathered.

Buried in Obamacare regulations from July 2010 is an estimate that because of normal turnover in the individual insurance market, “40 to 67 percent” of customers will not be able to keep their policy. And because many policies will have been changed since the key date, “the percentage of individual market policies losing grandfather status in a given year exceeds the 40 to 67 percent range.”

That means the administration knew that more than 40 to 67 percent of those in the individual market would not be able to keep their plans, even if they liked them.

What I find most nefarious about this whole thing is that the President, when falsely assuring the public that they could keep their plans, was basing it on a technicality that was not likely to hold true, and I knew it.

There is nothing in the Affordable Care Act (Obamacare) that legislatively removed people from their insurance plans and hospital and doctor networks.  What happened is the ACA imposed new minimum requirements for health insurers to provide and allows the Department of Health and Human Services to further impose regulations on the insurance industry.  It’s true, you can keep your insurance plan…so long as your insurer continues to offer the plan, which they won’t because of the new minimum coverage requirements.  So technically people aren’t losing the insurance plan because of the ACA, their insurer is removing them (because of the ACA).

Same with employers.  The ACA won’t kick you off your employer offered insurance plan, but employers might stop offering the insurance due to the burdensome costs and compliance paperwork required by HHS and the ACA.  The desired end is to force as many people off their private insurance plans and on to the health exchanges.  This is necessary for the program to be financially stable, which currently isn’t.

My next prediction?  The President and Congressional Democrats who passed the ACA under other-than-transparent-and-honest conditions, assured Americans that the ACA would not lead to a single-payer healthcare system.  But what was the premise for instituting the ACA in the first place?  Our free market health insurance system was broken and needed fixing (despite the vast majority of Americans liking their plans).

We now have a partial free market/government run insurance system.  The ACA’s roll out has been nothing short of amateur and poorly planned.  From the start its cost has nearly tripled its initial administration predicted cost.  The system itself places financial incentives on not enrolling.  For example, if I were to enroll in a health insurance plan now the monthly premium would be $736 per month with a $12,000 annual deductible costing roughly $20,000 per year out of pocket in health related costs before any insurance coverage picks up any medical costs.  But if I refused to enroll, the penalty is 1% of my income which is significantly (and I can’t stress significant enough) less than the $20,000.

Soon, we will realize that there isn’t enough people enrolled to sustain the costs of the ACA.  The health insurance system will fail miserably.  Now what?  Well, the free market system didn’t work, and the free market/government system doesn’t work, what do we do?  Single payer government run healthcare.

Conspiracy theory alert: I think it was designed to fail so that single-payer government run healthcare could be implemented as a solution to the disastrous ACA.  It won’t even be seen as a failure.  The ACA’s failure will be blamed on politicians (Republicans), not the faulty system itself.

Comments

  1. This administration just can’t get out of it’s own way. At every possible turn it appears that if the wrong choice can be made, it’s made.

    Previous administrations have had numerous occasions in which utter incompetence unfolded as a result any number of reasons, yet this group seems destined to go down while battling Bush’s 8 years for worst presidency ever. Everything these idiots touch turns to crap, and not even Obama’s addiction to cronyism has saved him or his Nobel reputation.

    • The only thing I can add is “and at every turn, the president claims he had no idea what’s going on”. Is it possible that everyone makes his decisions for him and he really is inept, or is it an excuse in hopes it doesnt come back on him?

      • I think his team of handlers have dropped the ball, several times over. When the US president makes pseudo executive decisions there is usually a mechanism of non-accountability that allows the president to escape unscathed. This team of circus idiots seems to have skipped that most obvious of chapters altogether. It seems that every mistake, including the obvious and avoidable ones in which either Obama himself knew about in advance, or one of his cronies knew about, was handled in exactly the wrong way.

        I recently used this analogy: The Buffalo Sabres this year have fielded a team that should be in the AHL. This reminds me of the difference between the big leagues (Executive Office) and a mayorship in central Georgia in the 1970’s.

  2. He’s a Manchurian candidate, which is why he knows nothing.

  3. John,

    Folks in the military have a name for this…Nash would know it. F-U-B-A-R.

    ObamaCare was bungled from the beginning. President Obama wasted all his political capital on this foolishness…

  4. Bernard Goldberg made the point last night that P-BO is either lying or totally inept. I can’t disagree.

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